Legal Question in Business Law in Virginia

My business partner managed to write checks in excess of $50,000 to himself to pay for other business ventures for his own financial gain without my consent or knowledge. The checks were suppose to have 2 signatures when the amount was $50,000 or above, a policy that was initiated by my partner and myself upon opening the business account. I have since learned that there were several checks were cashed by the bank without the 2 signatures..the policy and procedure were simply not followed. What is my recourse of action? The business was an LLC therefore not allowing me to sue my partner. How do I recoup this huge loss and make sure that my partner does not get away with, what I believe, to be blatant robbery!!

Frank Eppling


Asked on 2/07/11, 9:52 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say this. If you set up the bank account and instructed the bank not to cash any check that was $50k or higher, and they disregarded your instruction, they have liability. Of course a complete review of everything is needed. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 2/09/11, 12:25 pm


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